Research On Investment Decision And Financing Constraints Of Chinese Smes Under Technology Innovation Background

Innovation-driven strategy determines the potential and space of China’s future economic growth.Technological innovation of small and medium-sized enterprises is the core component of innovation-driven strategy.At present,the development environment of SMEs in China is not very good.There are some shortcomings in technological innovation investment.Financial constraints and financing constraints are important bottlenecks.In this context,this paper focuses on the impact of financial constraints on innovation investment of SMEs in China under the background of technological innovation,and further studies the impact of technological innovation on financing constraints of SMEs in China.The purpose of this paper is to explain theoretically the impact of financial constraints and financial leverage on SMEs’ innovative investment,and to further analyze the reasons that affect SMEs’ financing constraints,especially bank credit rationing.This study is of Exploratory Significance for solving the "difficult and precious" problem of SMEs’ financing and further stimulating the investment vitality of SMEs’ technological innovation.The research results of this paper have certain reference value for SMEs and banks;and also provide corresponding theoretical support for the government to formulate innovation policies.This paper focuses on theoretical analysis,mainly using the real option method,combined with the shortcomings of current research on this issue,firstly,the impact of financial constraints on SMEs’ technological innovation investment decision-making and risk-return is analyzed theoretically;secondly,the interaction between financial leverage and SMEs’ technological innovation investment decision-making and risk-return is analyzed theoretically.Secondly,it theoretically analyses the financing constraints of SMEs under the background of technological innovation,especially the impact of bankruptcy risk on bank credit rationing.Finally,it further verifies the bank credit rationing constraints faced by SMEs from an empirical perspective.The specific contents and conclusions of this paper are as follows:Firstly,in the part of studying the impact of financial constraints on SMEs’ technological innovation investment decision-making and risk-return,this paper finds that when SMEs are subject to financial constraints,the investment threshold and investment intensity show a "V" change process with the improvement of liquidity.Because of the complementary relationship between financing capacity and SMEs’ liquidity,the improvement of liquidity will offset the impact of inadequate financing capacity on investment expected returns.Modularization gives firms flexibility to change investment intensity,and the increase of optimal investment intensity will increase the expected return of investment.Therefore,the risk return of R&D investment will jump up and then decrease with the improvement of liquidity.In addition,when the market is very depressed,the risk return of investing in low complexity module is higher than that of high complexity module,and vice versa.Secondly,in the study of the interaction between financial leverage and SMEs’ technological innovation investment decision-making and risk-benefit,this paper considers that innovative enterprises sell old assets and debt financing to implement technology upgrading strategy.On the basis of establishing real option model before and after technological upgrading,this paper analyses and compares the financial bars between SMEs and SMEs in Africa before and after technological upgrading.Rod and risk return.The conclusion of the study indicates that,because growth options have the function of increasing risk and enterprise value,the improvement of technological efficiency of new technologies and the cash flow rate of in-situ assets will increase the value of growth options,and will also improve the level of financial leverage of enterprises before technological upgrading.The greater the interest flow of old debt and the lower the technical efficiency,the greater the risk of bankruptcy before technology upgrading,but the higher the efficiency of new technology,the higher the risk return before technology upgrading.Compared with non-technology upgrading,technology upgrading will improve the financial leverage of enterprises,reduce the risk of bankruptcy and risk returns.Thirdly,in the study of financing constraints of SMEs under the background of technological innovation,this paper points out that the fundamental reason for financing difficulties of SMEs is that banks can not fully meet the capital needs of enterprises by raising loan interest rates in order to avoid loan risks and losses.This paper establishes a real option model for enterprise bankruptcy liquidation and a value model for bank debt,examines the interaction between bank loan terms and enterprise bankruptcy decision-making,and concludes that the net value of bank debt decreases with the increase of the probability of enterprise bankruptcy,and with the decrease of volatility,the interest rate of bank loans decreases,the loan amount increases,and the net price of bank loans increases in equilibrium loan contracts.Value and the value of borrowing enterprises also increased.Finally,in the part of financing constraints of SMEs under the background of technological innovation,this paper constructs an empirical model of influencing factors of SMEs’ credit quota and loan interest rate,and uses least squares regression analysis method.The empirical study finds that the credit quota has a linear positive correlation with SMEs’ asset size and assets,and the production(innovation)enterprises are less productive than non-productive ones.Production enterprises are more susceptible to credit rationing.Overall,based on the fact that SMEs are subject to financial constraints and are difficult to engage in high-level technological innovation,and combined with the reality of current supply-side structural reform,this paper breaks through the lack of previous research literature to change the R&D intensity,studies the investment and financing decision-making behavior of enterprises’ technological innovation,and obtains the dynamic characteristics of R&D intensity(level)and technological upgrading decision-making and its behavior.Further,unlike the existing literature,this paper does not consider adverse selection and moral hazard,but only considers the possibility that small and medium-sized enterprises have bankruptcy risk and then cause losses to bank loans.Under the condition of complete information,it provides a new explanation for the mechanism of credit rationing from the perspective of bankruptcy options,and makes an empirical study of the theoretical results.This is the possible innovation of this paper.